Location: Olympia-Lacey-Tumwater, WA | Metro: Olympia-Lacey-Tumwater, WA MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,530 |
| 1 Bedroom | $1,600 |
| 2 Bedrooms | $1,880 |
| 3 Bedrooms | $2,460 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1800 for ZIP 98505 in fiscal year 2024 can sufficiently cover the mortgage on a home. The median home value in 98505, which includes parts of Olympia, WA, is not explicitly stated in the latest data. However, it's crucial to consider that the FMR is set to ensure affordability and accessibility for low-income renters, not necessarily to match the mortgage payments of homeowners.
The next concern could be the level of renter demand at a certain percentage. While the exact percentage of renter demand for ZIP 98505 isn't directly provided, the overall rental market trends in Olympia suggest a steady demand. The real estate market in 98505 shows that rental properties are competitive, indicating that there is sufficient interest from potential tenants.
Another objection might revolve around whether housing vouchers will keep up with the market rents in 98505. The data from the National Housing Law Project indicates that voucher utilization varies widely across different areas and is influenced by local policies and availability. In 98505, it's important to note that voucher holders have protections and rights under federal law, but the specific rate at which vouchers increase to meet market rents is not detailed in the provided information.
To summarize, while the FMR of $1800 is designed to support low-income renters, it may not fully cover the mortgage on a property without additional income sources. Renter demand appears to be stable, supporting the viability of rental investments. Lastly, although voucher holders have protections, the precise alignment of voucher increases with market rents in 98505 remains unclear without more specific local data.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.